5 Key Ways a Contractor Can Be Subject to a Government Claim
The performance of any government contract by a contractor has the potential to bring certain monetary risks of a government claim against the contractor. Below, we discuss 5 key ways a government contractor can be subject to a government claim and best practices to reduce your risks. 1. Overpayment A common type of government claim is based upon what the government considers to be an overpayment on its part. For example, an agency might have paid an invoice where the . . . Read More
Weekly Update for Government Contractors and Commercial Businesses– June 15, 2022
If you have questions concerning the content below, please visit this link . Upcoming Events: Register to attend PilieroMazza’s upcoming events here . Recent Thought Leadership: Check out PilieroMazza’s recent client alerts and blogs here . GovCon Live! Podcast: Listen to PilieroMazza’s latest episodes and follow us to hear more here . GOVERNMENT CONTRACTS PilieroMazza’s Cy Alba Testifies Before House Committee: Are Governmentwide Contracts Helping or Hurting Small Contractors? Cy Alba , 06.15.22 On June 14, 2022, PilieroMazza ’s Isaias “Cy” Alba , a partner in the Firm’s Government Contracts Group , testified before . . . Read More
PilieroMazza’s Cy Alba Testifies Before House Committee: Are Governmentwide Contracts Helping or Hurting Small Contractors?
On June 14, 2022, PilieroMazza ’s Isaias “Cy” Alba , a partner in the Firm’s Government Contracts Group , testified before the House Committee on Small Business to advocate for the rights of small business government contractors in procurement contracts. Specifically, the hearing examined governmentwide contracts, including the Best-In-Class (BICs) contracts that originate from the Category Management initiative, and assessed their impact on the federal small business base. In his testimony, Cy discussed potential solutions to reduce the barriers to entry for small businesses as it pertains . . . Read More
Small Business Set Asides Now Allowed Outside the U.S.: What You Need to Know
Effective May 26, 2022, the Federal Acquisition Regulation (FAR) gives contracting officers the discretion to apply the Small Business Act (Act)—implemented by FAR Part 19—outside the United States and its outlying areas. This final rule (Rule) could create significant business opportunities for small business government contractors capable of competing for overseas procurements. By way of background, the Small Business Administration (SBA) has consistently taken the position that the Act is not geographically limited and, as a result, FAR Part 19, should . . . Read More
New Virginia Law Prohibits “Pay-When-Paid” and “Pay-If-Paid” Provisions in Construction Contracts
Construction contracts routinely set payment terms as “pay-when-paid” or “pay-if-paid.” These terms protect the prime contractor from bearing all the risk of nonpayment by the owner. In Virginia, however, that will not be true for much longer. Last month, Virginia lawmakers passed Senate Bill 550, which makes “pay-when-paid” and “pay-if-paid” clauses unenforceable in most circumstances. Specifically, the new law applies to both public construction contracts and certain private construction contracts that involve at least one general contractor and one subcontractor. . . . Read More
Law360: Cy Alba Comments on Protests Highlighting Systemic Issues With GWACs
Multiple protests and a string of amendments across two recent multibillion-dollar, government-wide acquisition contracts highlight several systemic issues with the way federal agencies solicit those deals, such as how bids are scored, experts said. . . . GWACs are large, multiple-award contracts administered by one agency but usable across the federal government, covering commonly-used items and services, such as IT or professional services. They are part of the government’s “category management” program, intended to allow it to leverage its immense . . . Read More
PilieroMazza’s Kathryn Hickey and Corporate/M&A Team Included in 2022 Chambers USA Rankings
PilieroMazza is pleased to announce that Kathryn Hickey earned an individual ranking in the 2022 edition of Chambers USA as a leading Corporate/M&A attorney in Maryland. PilieroMazza’s Corporate/M&A practice received a similar ranking as a leading M&A practice. “Our goal is always to provide the highest level of legal representation to our clients, and this ranking conveys the priority we place on legal acumen and client service,” remarked Kathryn. About PilieroMazza’s Mergers & Acquisitions Team Lawyers on PilieroMazza’s Mergers & Acquisitions Team work collaboratively to advise government contractors, commercial . . . Read More
DOD Issues Guidance on Effect of Inflation on Government Contractors
On May 25, 2022, the Department of Defense (DOD) issued Guidance on Inflation and Economic Price Adjustment (Guidance Memorandum). It was long overdue. Inflation is steadily rising and, as a result, contractors with fixed-price contracts are forced to shoulder skyrocketing supply costs since fixed-price contractors bear the risk of increased costs. As these cost increases erode profit margins and continue to drive contracts into loss positions, contractors are seeking some type of relief. PilieroMazza recently hosted a webinar, Supply Chain Pain: How Contractors Can Get Relief from a Supply Chain-Related Claim , detailing relief options and best practices when a . . . Read More
USDA Proposes Resuscitating Rule to Blacklist Government Contractors for Labor Law Violations
On February 17, 2022, the United States Department of Agriculture (USDA) proposed a rule to update its Agriculture Acquisition Regulation (AGAR), which has not had a major revision since 1996. One component of the proposed rule requires USDA contractors to maintain compliance with a broad range of labor and employment laws and regulations in order to do business with the USDA. These requirements are strikingly similar to the Obama-era Fair Pay and Safe Workplaces Executive Order (nicknamed “the blacklist rule”). Contractors . . . Read More
DOL Updates Language on Service Contract Act Wage Determinations AGAIN!
An executive order increasing the minimum wage for non-exempt employees working on specified types of federal contracts took effect January 30, 2022. However, recent wage determinations issued by the Department of Labor (DOL) fail to appreciate that contracting officers are supposed to modify contracts to include the applicable Federal Acquisition Regulation (FAR) before the new minimum wage provisions are effective. Raising wages prior to proper incorporation of the applicable FAR provision risks a government contractor’s eligibility for a contract price . . . Read More